Post Office Senior Citizen Savings Scheme (SCSS) 2022

Senior Citizen Saving Scheme (SCSS) is a post office saving scheme for senior citizens above the age of 60 years. Applicants older than 55 years but lesser than 60 years can also open Post Office Senior Citizen Saving Scheme if they have taken voluntary retirement or have retired on superannuation (subjected to terms and conditions). For amounts lesser than Rs. 1 lakh the payment can be done in cash. For amounts more than Rs. 1 lakh the payment can only be done via cheque. Let’s discuss the scheme in detail below:

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Features of Post Office Senior Citizen Saving Scheme (SCSS)

A post office senior citizen saving scheme makes a good investment option for people who have retired as it offers an interest rate of 8.6% w.e.f October 01, 2019. Below are the important features of post office senior citizen savings scheme:

Post Office Senior Citizen Saving Scheme Maturity Period of SCSS: 5 years
Post Office Senior Citizen Saving Scheme Multiple Accounts: In SCSS a depositor/subscriber can have an individual account or a joint account with their spouse. The spouse not necessarily be a senior citizen and the first depositor will be considered as the investor. And the maximum deposit limit in the joint account still remains at Rs. 15 lakhs (in the multiples of Rs. 1000) only. Though individuals can open multiple accounts the collective balance in all the accounts cannot exceed Rs. 15 lakh.
Post Office Senior Citizen Scheme Nomination Facility: This Scheme allows the nomination facility while opening or after the opening of the account. The depositor can nominate any person by filling an application in Form C.
Post Office Senior Citizen Saving Scheme Account Transfer: The account is easily transferrable from one post office to another.
Post Office Senior Citizen Scheme Premature Closure: This scheme permits pre-mature closure- after one year on deduction of 1.5% of the deposited amount and 1% of the deposited amount after two years. Once the scheme is matured, it can be further extended for three by filing an application within one year of maturity. In that case, the Senior citizens saving account can be closed without any deduction after the expiry of one year of the extension.
Post Office Senior Citizen Scheme Tax Benefit: The depositor can claim tax benefits under Section 80 C on the deposited amount.

Minimum and Maximum Deposit in Post Office Citizen Scheme

The scheme offers a steady source of income with one time investment of a fixed sum. However, the minimum limit of investment is Rs. 1000 and maximum is Rs. 15 lakhs.

Eligibility Criteria to Open Post Office Senior Citizen Saving Scheme Account

Minimum Age Criteria for Post Office Senior Citizen Scheme: 60 years

Special Age Criterion: 55 years to 60 years in case of voluntary retirement or superannuation. Provided the account is opened within a month of receiving retirement benefits and the amount shall not exceed the retirement benefits.

Post Office Interest Rates for Senior Citizens

The interest rate on the post office senior citizen scheme is decided by the Central govt. every year. Currently, it is 7.4% per annum (from October 01 to December 31, 2021)

Post Office Interest Rates Table 2022
Post Office Senior Citizen Saving Scheme	Interest Rate
Public Provident Fund (PPF)	7.10% compounded annually
National Savings Certificate (NSC)	6.80% compounded annually but payable at maturity
Senior Citizen Savings Scheme (SCSS)	7.40% revised quarterly
Kisan Vikas Patra (KVP)	6.90% compounded yearly
Time Deposit Account (TD)	1 year - 5.50% paid quarterly 2 years - 5.50% paid quarterly 3 years - 5.50% paid quarterly 5 years - 6.70% paid quarterly
Post Office Recurring Deposit Account (RD)	5.80% per annum compounded quarterly
Post Office Monthly Income Scheme (MIS)	6.60% per year payable monthly
Sukanya Samriddhi Yojana (SSY)	7.60% per annum compounded annually
Post Office Savings Bank Account	4% per annum

Post Office Senior Citizen Saving Scheme - List of Documents

To make Investment in Post Office Senior Citizen Saving Scheme, the following documents need to be submitted by the applicants:-

Fill the application form available at the Bank or Post office
Fill The Know Your Customer (KYC) form
Provide the Permanent Account Number (PAN) Card Number
Address Proof
Recent Photograph
Age Proof
Aadhaar Card
Retirement Benefits’ Disbursal Date

Also, the Applicant’s Employer Certificate mentioning the retirement VRS or Superannuation needs to be submitted.

How to Open Senior Citizen Saving Scheme in Post Office?

To make payment by cash the amount should be lesser than Rs. 1 lakh and if it is above Rs. 1 lakh then it possible to pay by cheque. Submit all the documents that are mentioned above.

Carefully fill the SCSS Account Opening form while providing the nominee details. Also, the original identity proof is required for verification purposes. Finally, get a witness signature and complete the procedure to get started.

In order to automate the scheme, it is required to have a saving bank account and place a request for automatic transfer of Senior Citizen Scheme interest to the RD account through the depositor’s Post Office Savings Account.

Online Payment Facility for Post Office Senior Citizen Saving Scheme

Online payment facility is only available for Post Office RD account through ECS or Electronic Clearing Service. Also, one can get the payment done from an agent through the post office agent portal and he can make the payment online on the behalf of the depositor.

It is better to check with the post office branch to seek clarity regarding the Post Office Senior Citizen Scheme online payment.
Hope the above information proves to be helpful in case you want to open an SSCS Account in the Post office. Below are some of the frequently asked questions that you can refer to.

FAQ's

Q: How to open the account of the Senior Citizen Savings Scheme online?

Ans: Banks may offer to open the Senior Citizen Savings Scheme account online through internet banking but sadly post offices do not provide the online service for the account opening. One needs to visit the bank branch or the post office and fill the form of account opening. The form then should be attached with the required documents such as the age proof, identity proof, address proof, and the cheque for the deposit sum.
Q: What is the interest rate of the Senior Citizen Savings Scheme?

Ans: Presently, the interest rate on an SCSS is 7.4 percent as of quarter 4 of the financial year 20-21. The interest will be payable on March 31, June 30, September 30 and December 31.
Q: Is Section 80C of the IT Act, applicable to the Senior Citizen Savings Scheme?

Ans: The investments made within the SCSS are entitled to income tax deduction benefit under Section 80C.
Q: What is the maximum age limit to open the Senior Citizen Savings Scheme account?

Ans: Anyone who is 60 years of age can easily open a Senior Citizen Savings Scheme account.
Q: Is it possible for any family member to open a joint Senior Citizen Savings Scheme account with any member of the family?

Ans: The joint SCSS account can only be opened by investing Rs 15 lakhs, in multiple of Rs 1,000 with the spouse.
Q: In the case of the joint account, what should be the age of the spouse?

Ans: When it comes to the joint account, the age of the primary depositor or applicant the age is the deciding factor for the eligibility to invest in the scheme. However, there is no age limitation for the second joint holder.
Q: Is it possible to open the SCSS account with any person?

Ans: No, the SCSS account can only be opened with the spouse.
Q: Is the Senior Citizen Savings Scheme rate of interest simple or compounding?

Ans: The Senior Citizen Savings Scheme interest rate is compounded and is payable quarterly.
Q: How many accounts can be opened in a single name in the SCSS?

Ans: A senior citizen can invest in the scheme by either opening an individual or a joint account. One can invest in any number of the SCSS account, however, limiting, to the threshold adding all accounts.
Q: What is the share of the joint account holder in the deposit in the SCSS account?

Ans: The whole investment amount in the account within the scheme is attributed to the first depositor only. The share of the second depositor, therefore, does not arise.
Q: Is any fee charged for the nomination or cancellation/change of nomination?

Ans: Any such fee has not been specified.
Q: Is it possible to extend the SCSS account?

Ans: The depositor can extend the account for a period of three years by simply making an application to the office of deposit within one year after maturity.
Q: What if the SCSS account has been opened in contravention of the rules of SCSS?

Ans: In case the account has been opened contravening the SCSS rules then the account will be closed immediately. The deposit in the account post the deduction of interest paid on such deposit will be refunded to the depositor.
Q: Is it possible to open the Senior Citizen Savings Scheme account for a mentally retarded that can be operated by the guardian as appointed by the court?

Ans: As of now, no such provision exists within the Senior Citizen Savings Scheme. No account can be opened in favor of a mentally retarded person.
Q: How many times the deposit can be made in the SCSS account?

Ans: The Senior Citizen Savings Scheme matures in 5-years. The lock-in period for the Senior Citizen Savings Scheme is five years. However, the investment can be eventually extended for the next three years.